Health insurance costs spike after key ACA subsidies end

After Affordable Care Act subsidies — or premium tax credits — expired at the beginning of the year, West Kentucky Allied Services said hundreds of people have been affected locally, leaving some confused and concerned.

Subsidies from the ACA helped lower insurance costs for lower-income individuals who do not qualify for Medicare or have employer-sponsored insurance. The end of the subsidies going away has raised the monthly premiums people pay for those plans.

"You're seeing people last year who may have paid $500 a month to $800 a month; now it has gone up to $2,000," WKAS kynect Health Care Director Samantha Penrod said.

Penrod said the group most affected — who are also losing the subsidies — is made up of households that make over $100,000 per year. Those affected locally have had to make different decisions about how to pay for their health care, according to Penrod, who has spoken to clients about the decision.

"We've had to have a lot of really hard conversations with clients," Penrod said. "Especially people who were just a little over that income limit mark, who now are having to adjust and find other ways to maybe cut back on different things in their life so that they can afford their health insurance."

Penrod said some have opted to decrease their plan coverage to keep it affordable, while others look for cash options for their health care instead.

"We have gold plans, silver plans and bronze plans," Penrod explained. "So, you're seeing people on silver plans go down to bronze plans, which means that they are paying a lower monthly premium, but their deductible is higher, and their benefits might not be as good as if they were still on their silver plan."

Hundreds locally have been affected due to the ACA subsidies expiring, according to Penrod.

"Most of those people that I deal with that make over $100,000 are self-employed, small business owners, farmers, those types of people who don't have an option for other health insurance," Penrod said. "Most people you know can get health insurance through their employer. They don't have that option, so this is kind of the only option that they have. So, they are coming up with different strategies to find something else to do."

WKAS has helped by showing clients how to navigate the marketplace and pointing them toward affordable options. The agency also refers clients to different organizations or agents who can help them understand the best options.

"There are different organizations within western Kentucky that help with prescription drugs and different medical costs," Penrod said. "Also, referring them to insurance agents is very important, because insurance agents have a better insight into the insurance side, and they can break all of that down with them about what all the different costs are."

Despite the challenges, Penrod said WKAS is seeing new people sign up for coverage, saying while some clients have dropped plans due to costs, just as many enrollees have come in.

"Even though we have lost so many Kentuckians from the marketplace, we have gained brand new Kentuckians, and it does show us that people are moving into the area," Penrod said. "There are people who need health insurance coverage, who are actively taking an interest in their health. That's what I'm seeing a lot more of. I think it will have an effect, but I think the positive will outweigh the negative in the long run."